Basic Energy inks $165 million term loan agreement, will cut revolver

By Wendy Van Sickle

Columbus, Ohio, Feb. 19 – Basic Energy Services, Inc. entered into an agreement for a $165 million term loan and a $15 million delayed-draw term loan on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The term loans will mature on Feb. 26, 2021 or on Nov. 17, 2018 if Basic has not refinanced its senior notes due 2019 by that date.

Outstanding loans will bear interest at 13˝% a year.

In addition, Basic will be responsible for lenders’ fees that include a closing payment equal to 7% of the principal amount of commitments of each lender.

U.S. Bank NA is the administrative agent.

The loans are conditioned, among other things, on Basic executing a guarantee agreement under which each of the company’s subsidiaries guarantees its obligations, a security agreement under which the obligations are guaranteed by substantially all of Basic’s and the guarantors’ assets and an intercreditor agreement governing priority of distribution of collateral is pledged under the term loan agreement and Basic’s revolving credit facility.

Basic expects the term loan agreement to close on Feb. 26, at which time it plans to reduce its revolving credit facility to $100 million.

Fort Worth-based Basic Energy Services provides well site services to oil and gas companies.

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